Merchandise That Has Been Sold and Is Returned to the Firm

question 157

Multiple Choice

Merchandise that has been sold and is returned to the firm by the customer is called

• A) a sales discount.
• B) an expense.
• C) a sales allowance.
• D) cost of goods sold.
• E) a sales return.

---

Definitions:

Ownership Interest

A party's ownership stake in an entity, represented by the proportion of shares or equity they hold.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders, typically in the form of cash or additional shares.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as its original cost minus accumulated depreciation or amortization.